Property and Equipment Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consists of the following at December 31, 2016 and 2015:

(in thousands)	2016			2015
Land	$	57,693		$	58,757
Buildings and improvements	93,252			90,429
Leasehold improvements	17,610			10,934
Furniture, fixtures and equipment	136,513			115,861
Vehicles	97,119			87,307
Construction-in-progress	12,574			16,349
	414,761			379,637
Less: Accumulated depreciation	(128,020		)	(83,659		)
	$	286,741		$	295,978

Total depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $48.0 million, $21.0 million and $15.5 million, respectively, including amortization expense related to capital leases. These amounts include depreciation expense of $9.5 million, $5.3 million and $4.0 million included in cost of goods sold in 2016, 2015 and 2014, respectively.

Impairment of BMHC ERP System

During 2013, BMHC selected a new third-party software vendor for its planned Enterprise Resource Planning ("New ERP") system and began incurring costs related to design, development and implementation of the New ERP. BMHC also began paying an annual licensing fee. During March 2016, the Company decided to integrate all operations under the Enterprise Resource Planning system utilized by Legacy SBS (the "Legacy SBS ERP system") and to discontinue the use of the New ERP. In connection with this decision, the Company recorded asset impairment charges of approximately $11.9 million in its consolidated statement of operations for the year ended December 31, 2016 related to capitalized software development costs for New ERP functionality that the Company had intended to implement in future periods. These costs had previously been recorded as construction-in-progress within property and equipment on the consolidated balance sheets.

As of December 31, 2016, the Company had approximately $1.6 million of unamortized prepaid expenses related to the New ERP recorded within prepaid expenses and other current assets on its consolidated balance sheet. These unamortized prepaid expenses relate to license and service contracts that will continue to be utilized by the Company until the time the Company ceases using the New ERP system. The Company is also obligated under a non-cancellable agreement to make future payments through 2017 of approximately $2.0 million related to New ERP software licenses. The Company may be required to accelerate the expense recognition of any unamortized prepaid costs and future contractual costs once we cease using the New ERP.